Military Income

Combat Zone Exclusion

Qualifying Military Income

Members of the U.S. Armed Forces who serve in a combat zone may exclude military pay from their taxable income.

A member of the Armed Forces does not have to receive the qualified pay while in a combat zone, in a hospital, or in the same year they served in a combat zone. However, the entitlement to the pay must have fully accrued in a month during which they served in the combat zone or were hospitalized as a result of wounds, disease, or injury incurred while serving in the combat zone.